Absolutely right about having an emergency funds. Emergency funds will always serve as a guard against selling of Bitcoin when emergencies arise. Also it’s possible that with discipline , one can invest in Bitcoin without a stable source of income, but it requires an attentive planning. So the key is having a discretionary income which will you help you invest using DCA method, also having an emergency income to avoid selling when emergencies arise. So prioritizing both is essential for a smother and sustainable investing .
Bitcoin is a highly volatile asset. Therefore, proper prioritization and management of emergency funds, reserve funds, investments, and holdings is very important so that there is no sudden income shortfall or undisclosed expenses. Unexpected situations such as: sudden temporary closure of a long-standing source of income, medical treatment, simultaneous car and house damage, depletion of reserve funds due to the fall in the price of BTC - all these can create a cash flow crisis. Therefore, it is not only important to have an emergency fund, but also to have a plan for prioritizing floating cash, contingent expenses, and back-up funds.
The volatility of bitcoin has nothing to do with the emergency funds for a long-term investor. Maye you are speaking like a trader that is worried after buying bitcoin and expecting profits in a short time and it does not come and it keeps going down even with one single candle. Emergency funds is not meant for traders, it is used by long term investors to protect the investment so that irrespective of what the market does, the investor is comfortably living his life and will be patient to wait it out without panic. The only time you have to worry about bitcoin volatility is when you are a trader that is looking for the perfect price to buy to be able to sell quickly when the price rises. This is not what we are discussing here and why the concept of emergency fund is important.
If you must know, the volatility of bitcoin is actually one of the beautiful things about bitcoin and simply means that the demand is high and erratic, something that should motivate you that you are in the right business. It is the very nature of bitcoin that makes it special and also test your patience level.